The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, OCTOBER 11, 1933. INSIDE INFORMATION.

Hokitika Guardian, 11 October 1933, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. WEDNESDAY, OCTOBER 11, 1933. INSIDE INFORMATION.

It is not too much to say that world interest is centred in the national recovery plan attempted in th e United States. The President at a critical moment in the World Conference, elected to take his own route and act independently. At that time the reot of the world, the representatives of the nations whereof were gathered in conclave, awaited the discision of America, Naturally there was keen diaappointement at the abrupt (find abortive ending to a gathering from which so much was expected. It appeared, without the unified action qf America-, definite results were impossible, and since that time the matter 'and the general outlook has contiued to remain indefinite. America with little delay entered on a great effort at industrial recovery. The measures have been described as “extraordinary.” Huey included the (gold embargo, power to inflate, if Congress agreed; the depreciation of the dollar in the foreign exchanges; enforced wages increase with reductions in working hours; and a general measure of relief for farmers. Various opinions have been expressed on this great national scheme, but invariably with reservations as to ultimate success. It is admitted a mild boon lias set in. Trade has been better, and there was at the outset a ready disposition 1 to conform with the President’s wishes. These were placed before the people in a manner typically American. The bull was taken by the horns, as it were, and the scheme forced o n the people, and there was a general acceptance of the unusual steps proposed. Since those earlier days, matters perhaps have not gone so well. With the passing of the glamour of the occasion, rebuffs have come, and matters are not running too smoothly. But the enforcement of the scheme, despite strikes and recnleitant employers, goes on. Many and varied are. the opinions expressed. The best inside information should be found from the banking bulletins. The monthly issue of the City Bank of New York for September, says that obviously the crux of the situation is whether the higher prices that have been established at wholesale can be paid by the public at retail, as stocks in retailers’ hands are replaced by higher priced goods and the 'advances passed on to consumers. Time alone can answer the question. The fundamental condition of a free flow of trade, is that wages, costs and prices as a whole should balance, and' that prices of various goods should he in line so tluft each producer Can exchange his .product equitably with others. Another view is that under the controlled system it will be necessary to give producers profits to supply the incentive to produce and increase employment. Above all it is considered requisite to re-establish confidence in the stability of money and credit, and that is just what the London Conference was prevented from doing. In summing up, the bulletin states the hazards into which the programme may fall are evident. The condition is that the consumers income has been insufficient to buy goods at the price asked, and the danger in attacking this problem by raising wages and reducing production, which raises costs and prices, is that money wage .payments may force prices upwards in a vicious circle without getting into balanced relations. The usefulness of a central controlling authority is recognised if it confirms to economic law, an essential basis. Finally, “even though the efforts fall short of the success descried, much may still be hoped of them.” Which seems to suggest that the element of grave doubt as to final success still exists, but natuially all arc honing for the best in other woids that something may turn up to make the recovery plan the success all hope for.